November canola is up $9.50/mt, December soybean oil is up 2.18 cents/pound, November European rapeseed is up 4.50 euro/mt and September Malaysian palm oil is down .20%. December oats are down 3 1/4 cents/bushel while November European corn is up 3.25 euros/mt. August crude oil is up $2.51/barrel, August ULSD is up $.0497/gallon, and the September Canadian dollar is up .00145 at .71515. The September U.S. Dollar Index is up .001 at 100.570 and the August Brazilian real is down .00030 at 0.19505.

Grain and oilseed markets are extending gains amid signs of strong demand and future issues globally. China, Mexico and Unknown collectively purchased 707,000 mt in soybeans for 2026-27 as reported by a USDA morning flash sale announcement. Those selling ahead of Trump's address to the nation expecting him to cause trade friction with China over 2020 election allegations may be covering their shorts on the lack of reactions, helping November soybeans rally back over $12/bushel.

In Europe, the French corn crop rating continues to collapse (as it should given the record setting drought at pollination time) with only 41% of the crop rated G/E compared to 84% just four weeks ago. Reports suggest that their corn crop could end up marking a 50-year low with significant increases in corn imports and additional feeding of wheat expected, which will likely impact their global wheat trade as well. The EU is currently expected to export 31 mmt of wheat in 2026-27 (leaving them as the second largest exporter behind Russia's 47.5 mmt expected export total) and import 6.5 mmt of wheat. Feeding more would have an impact on available exports, especially impactful if Russia's exports are restricted due to escalating attacks in the Black Sea area. On that front, Ukraine has now claimed to have hit 159 Russian vessels in the past 12 days, resulting in another jump in wheat and energy prices to end the week.

Energy markets are stronger on the escalating attacks in the dual wars with August crude oil now having filled the gap down on June 15 when it looked like the Strait of Hormuz would be opened upon signing of the MOU. The spillover support has soybean oil and canola ending the week sharply higher with the latter trying hard to post another outside reversal higher on the day. Extending quite the volatile slow and steady climb.

Outside markets are recovering slightly from the initial selloff in technology stocks overnight on Chinese AI competition with stocks cutting their losses, bonds remaining quietly higher and the dollar trading almost flat, not really sure what to do with all the cross currents.

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